NKI.BK WACC - Weighted Average Cost of Capital
The WACC of Navakij Insurance PCL (NKI.BK) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.5% | 7.3% |
| Tax rate | 17.6% - 20.7% | 19.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.47 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.5% |
| Tax rate | 17.6% | 20.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NKI.BK | Navakij Insurance PCL | 0.04 | 0.19 | 0.18 |
| 8070.SR | Arabian Shield Cooperative Insurance Company SJSC | 0 | 1 | 0.99 |
| 8270.SR | Buruj Cooperative Insurance Co SJSC | 0 | 1.55 | 1.55 |
| AYUD.BK | Allianz Ayudhya Capital PCL | 0.01 | 0.23 | 0.23 |
| BUI.BK | Bangkok Union Insurance PCL | 0.07 | 0.03 | 0.03 |
| INSURE.BK | Indara Insurance PCL | 0.03 | 0.21 | 0.2 |
| MTI.BK | Muang Thai Insurance PCL | 0.02 | 0.21 | 0.21 |
| NSI.BK | Nam Seng Insurance PCL | 0 | 0.7 | 0.7 |
| SMK.BK | Syn Mun Kong Insurance PCL | 4.27 | 0 | 0 |
| TVI.BK | Thaivivat Insurance PCL | 0 | 0.59 | 0.59 |
| Low | High | |
| Unlevered beta | 0.21 | 0.37 |
| Relevered beta | 0.21 | 0.39 |
| Adjusted relevered beta | 0.47 | 0.59 |
NKI.BK's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for NKI.BK:
cost_of_equity (7.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.47) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.